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Samsung Denies RIM Buyout Rumors

Only a day after reports emerged suggesting tech industry titan Samsung was preparing to grab up embattled BlackBerry-maker Research in Motion (RIM), the supposed buyer has publicly nixed such rumors.

On Tuesday (January 17, 2012), tech blog Boy Genius Report (known as BGR) reported it had learned Research in Motion co-Chief Executive Officer (CEO) Jim Balsille had met with Samsung in order to discuss a buyout. BGR reported that Samsung was prepared to pay anywhere between $12 billion and $15 billion to acquire the Waterloo, Canada-based company.

The rumor received apparent approval from stock market traders, with RIM shares spiking as much as ten per cent following the news.

Samsung Puts Distance Between Itself and RIM

On Wednesday (January 18, 2012), however, Samsung officially put those rumors to rest, issuing a formal statement that it has no plans to purchase RIM.

"Media reports of Samsung Electronics' buyout of Research in Motion are not true," noted a Samsung spokesperson. "Samsung is not considering the acquisition of RIM." (Source: pcmag.com)

In an interview with Reuters, Samsung CEO James Chung affirmed that strategy. "We haven't considered acquiring the firm and are not interested in [buying RIM]," Chung said, adding that his company had not been in contact with RIM co-CEO Jim Balsille to discuss such a sale. (Source: informationweek.com)

Experts Believe Third Party Help Necessary for RIM

This probably won't be the last time we hear rumors of a RIM buyout.

According to Information Week, the company recently hired Goldman Sachs to help plan its future in what is becoming an increasingly challenging market for the firm. Last year, RIM's share of the smartphone market dropped by more than half, from 13 per cent in the first quarter to roughly 6 per cent in November.

Industry analyst Craig Cartier believes RIM needs help from an outside source in order to solve its financial and marketing shortfalls.

"The smartphone software battle in the consumer space has narrowed to a two-horse race... between Android and Apple," Cartier said. "It will be a monumental task for RIM on its own to establish itself as a legitimate third (or fourth) alternative at the same scale as these players." (Source: informationweek.com)